TOPDOWN ANALYSIS: Shows Monthly uptrend INTO a BEARISH FLAG PATTERN
ACTION PLAN: 1.) Wait for price to show a break above previous high, then consolidate between monthly bearish flag trend line and show at least one 4h long wick rejection = enter a sell
2.)As soon as market hits a 1:1 risk reward = move stop-loss to breakeven as we might see a consolidation and then a huge move lower (capital preservation is key)
MAGIC IF: 1.)If market does not show rejection for a short position, look for a bearish engulfing candle on a higher time frame (30min, 1h, 4h) and then enter
2.)If market does not consolidate (in anticipation for the next big move) and then push lower, expect a large bullish movement upwards and then a strong exhaustion and retracement
Reasons/ Confluences:
.Clear strong uptrend exhaustion = bearish flag on the Monthly timeframe
.Price has shown strong bullish move therefore the next must be a retracement or consolidation (because the market always moves in HH, LL and LL LH)
.Price is hitting strong Monthly and 4h resistance area
TIPS:
.Stocks are known for whiplash and false breakouts - therefore only take a trade when clear signs indicate an opportunity (in this case a break and retest and possible long wick rejection)
.us30 is known for its volatility, therefore take caution with this pair = do not overleverage/ risk what you cant afford to loose
....................... !!! DONT FORGET TO LIKE AND SUBSCRIBE TO OUR CHANNEL FOR MORE FREE SIGNALS AND TURORIALS !!! ............................
ACTION PLAN: 1.) Wait for price to show a break above previous high, then consolidate between monthly bearish flag trend line and show at least one 4h long wick rejection = enter a sell
2.)As soon as market hits a 1:1 risk reward = move stop-loss to breakeven as we might see a consolidation and then a huge move lower (capital preservation is key)
MAGIC IF: 1.)If market does not show rejection for a short position, look for a bearish engulfing candle on a higher time frame (30min, 1h, 4h) and then enter
2.)If market does not consolidate (in anticipation for the next big move) and then push lower, expect a large bullish movement upwards and then a strong exhaustion and retracement
Reasons/ Confluences:
.Clear strong uptrend exhaustion = bearish flag on the Monthly timeframe
.Price has shown strong bullish move therefore the next must be a retracement or consolidation (because the market always moves in HH, LL and LL LH)
.Price is hitting strong Monthly and 4h resistance area
TIPS:
.Stocks are known for whiplash and false breakouts - therefore only take a trade when clear signs indicate an opportunity (in this case a break and retest and possible long wick rejection)
.us30 is known for its volatility, therefore take caution with this pair = do not overleverage/ risk what you cant afford to loose
....................... !!! DONT FORGET TO LIKE AND SUBSCRIBE TO OUR CHANNEL FOR MORE FREE SIGNALS AND TURORIALS !!! ............................